Caesars Entertainment falls after quarterly loss widens because of earnings miss

What happened

Caesars (CZR) fell 1.0% on October 28, 2026, after reporting third-quarter results that missed expectations, because the company posted a wider-than-expected loss per share. The company reported GAAP net revenues of $2.9 billion for the quarter. It also reported a GAAP net loss attributable to Caesars of $123 million and a loss per share of $0.61. That compared with a Zacks consensus loss estimate of $0.12, according to Business Wire and Zacks Investment Research. Trading volume was 1.1 times its 20-day average. The S&P 500 rose 0.3% on the day, leaving the stock 1.1 percentage points worse than the Consumer Cyclical sector median.

How big was the move

The one-day move was 2.5 times a typical daily move for this stock, reflecting an earnings-driven session. Caesars closed at $28.57 after opening 0.4% below the previous close. Over the last five sessions the stock fell 1.1%. In the past five years the stock had 456 sessions with a decline of at least 1.0%; twenty trading days later the median result was a decline of 1.3%, and 209 of 456 were higher.

The technical picture

The stock sat 2.3% below its 20-day moving average and 3.1% below its 50-day moving average, while it was 3.5% above its 200-day moving average. The 50-day average was above the 200-day average, a sign of an established uptrend, and the stock had spent 167 consecutive trading days above the 200-day average. The Relative Strength Index (14 days) stood at 31, in a neutral range between 30 and 70. The stock traded 7.5% below its 52-week high. Over one month and three months the stock fell 3.5%, while over one year it rose 26.7%, 14.1 percentage points ahead of the S&P 500. Volatility was 6% annualized over 60 days, lower than 99% of its own readings over five years.

Fundamentals and valuation

For the four quarters through September 30, 2026, revenue was $11.72 billion, which grew 3.1% from a year earlier. That compared with revenue growth one quarter earlier of growth of 2.4%. Gross margin narrowed to 49.7% from 50.3% a year earlier, and operating margin eased to 17.2% from 19.2%. Diluted earnings per share for the four-quarter period was $-2.62. The company also reported a loss per share of $0.61 for the latest quarter. Free-cash-flow margin was 5.0% and the free-cash-flow yield was 9.9%. The balance sheet showed net debt of 7.4 times EBITDA and share count over one year decreased by 1.4%.

Those figures underline a mixed profile. Revenue growth has rebounded modestly, but margins and reported profitability remain weaker than a year earlier. The high net-debt multiple highlights leverage risk and could constrain strategic flexibility. At the same time, a free-cash-flow yield of 9.9% points to meaningful cash generation relative to market value.

Earnings and analyst expectations

Caesars reported on October 27, 2026, with earnings per share of $-0.61 against $-0.12 expected, 395.6% below estimates. The company had zero consecutive quarters beating estimates. The average surprise over the last four reports was 100.0% below estimates and the typical two-day reaction after recent reports was that the stock fell 0.6%. The next report is scheduled for February 16, 2027.

Analysts were cautious. The consensus price target was $30.75, 7.6% above the closing price, based on 31 analysts. The consensus rating was Hold. Only 32% of analyst ratings were Buy or Strong Buy, reflecting tempered enthusiasm given margin pressure and leverage.

What to watch

• February 16, 2027: next scheduled earnings report
• Free-cash-flow yield of 9.9% and free-cash-flow margin of 5.0% for the four quarters through September 30, 2026
• Net debt of 7.4 times EBITDA and share count decreased by 1.4% over one year
• Consensus price target $30.75, 7.6% above the closing price, based on 31 analysts
• PromtFinance Momentum score 75 (Positive) and Revisions score 2 (Very weak)